Authorities are hopeful for the development of nine new petroleum fields to increase long-term energy supply in Thailand, following an official invitation for investors to apply for an auction for onshore petroleum exploration and production licences.
Not only will Thailand have an opportunity to produce more petroleum, but the country is also expected to generate 2 billion baht in investment value during the exploration period, said Warakorn Brahmopala, director-general of the Department of Mineral Fuels.
The department yesterday opened a data room at the Energy Ministry to serve energy companies interested in new onshore petroleum exploration and production in the northeast and central regions.
Companies can obtain information about the nine targeted areas, spanning 33,444.64 square kilometres, before making a decision on the investment.
Six to seven companies have shown interest in searching information in the data room, said Mr Warakorn.
Officials are pushing ahead with the Round 25 auction, the first to be held in 17 years.
Seven of the nine areas are located in the northeastern provinces of Nong Bua Lam Phu, Udon Thani, Khon Kaen, Sakon Nakhon, Kalasin, Maha Sarakham, Yasothon, Amnat Charoen, Chaiyaphum, Nakhon Ratchasima, Buri Ram, Roi Et and Surin.
The two remaining blocks are in Phetchabun, Lop Buri, Ratchaburi, Kanchanaburi, Nakhon Pathom and Suphan Buri in the central plains.
Mr Warakorn estimated that 7 trillion cubic feet of petroleum could be discovered.
Areas in the Northeast are believed to have a high potential for gas discovery, said Chatchapol Prasopchok, president and chief executive of UAC Global Plc, which runs two onshore petroleum blocks in Sukhothai.
He wants the government to permit the construction of gas-fired power plants near areas where gas is produced, so producers can sell the fuel to the plants.
"This is a way to encourage companies to invest in the nine areas," said Mr Chatchapol.
UAC produces crude oil and natural gas liquids (NGLs), which are separated from gas steam in liquid form, at its two petroleum fields. It sells oil to PTT Plc and NGLs to its two power plants at Pra Du Thao and Sao Thian, located in Sukhothai.
Another onshore petroleum operator is PTT Exploration and Production Plc.
